One Bank, One UniCredit Transform 2019

Transcription

1 One Bank, One UniCredit Transform 2019 Commercial Banking Italy A. Casini G. Ronca London, 12 December 2017

2 Transformation of operating model fully on track Strong commercial dynamics thanks to network revamp Focus on multichannel client approach, leveraging on all interaction points Improved customer focus with a lower cost structure Strict risk discipline on new loan origination and tight risk monitoring Transform 2019 fully on track, yielding tangible results 2

3 Economic landscape Italy open for business +1.6% 2017 Real GDP expected growth 1 Domestic credit to private sector 3 (% of GDP) ~86% #2 Manufacturing economy in Europe 2 Household saving rate 5 ~10% ~30% Export of goods and services (% of GDP) 3 % increase of online transaction 6 +17% ~5.7m Enterprises in Italy 4 Internet users penetration 7 62% 3 1. UCG Assumptions 2. World Bank - Manufacturing GDP per capita 3. World Bank 4. Ce.Bi 5. ISTAT 6. MIP/Osservatori.Net 7. Audiweb powered by Nielsen

4 Key business priorities and achievements Retail commercial performance mainly driven by productivity increase Strengthen asset gathering Reaffirm leading position in Retail lending Productivity 4 Expanded product offer also thanks to the partnership Pioneer-Amundi 1 Growth in AUM and its share of TFA Robust new production of Consumer Finance, improving the quality of origination 2017 key highlights Increased share of wallet in Small Business 4 Improving market share in residential mortgages new business 6 from 8.7% in Dec16 to 11.7% in Sep17 Strong increase in FTE productivity, accelerating in 2017 Productivity gains driven both by optimised salesforce and increase in total banking sales 1. Including new products 2. Includes Retail, Corporate, Private, Wealth Management, CC local, Leasing and Factoring 3. Recasted data 4. Leveraging on pre-approved loans, new acquisition initiatives (jointly launched by Risk and Business divisions) and dedicated IT tools (e.g. CRM tool for Small Business) 5. Consumer Finance and Small Business. CAGR relates to stock. AuM 2, bn AuM/ TFA Retail loan stock, bn CF&SB 5 Sales per FTE 7, Index Evolution M2016 9M % 34% 36% 41% Net Sales 9M2017: 8.1 bn M2016 CAGR: +2.5% M2017 CAGR 15-19: +5.8% Source: ABI 7. Ratio between number of Banking sales and FTE dedicated to sales activities. Banking sales are: current accounts, "Genius" cards, pre-paid cards, credit cards (Flexia), credit cards (Flexia) instalments and switch, overdrafts, personal loans, mortgages, "fast credit", enterprises loans, salary loans, saving & term deposit, AUM, insurance, P&C insurance, CPI, car insurance (new emissions and renewals), debit cards, POS, App Mobile and Online Banking 8. Figures relates to annualised data for 9M

5 Key business priorities and achievements The new Corporate model delivering tangible results 2017 key highlights Evolution Become go-to bank for customers Sustained new origination with consolidated risk discipline MLT new loans 1, bn M M CIB "fully plugged-in" (e.g., F&A, Joint Venture) and Boost Cross-selling synergies between Retail, Private and Wealth Management Focus on cross-border business - new international accounts increased by 11% Y/Y 2 Coordinated commercial activities - increased pitch Revenues from F&A and JV 3, m intensity, joint targeting, joint business meetings M2016 9M Transform operating model Network specialisation (Corporate and Retail) coupled with organisation delayering (minus 1 layer) New clients segmentation in place 1. Corporate loans excluding leasing 2. As of November Includes revenues from structured financing, Markets, DCM, ECM, M&A

6 Key business priorities and achievements Transformation of operating model fully on track 2017 key highlights Evolution FTEs Reduction of FTEs ongoing: - Ca. 2,700 net exits in (o/w ca. 1,000 in 4Q17) - Ca. 4,000 net exits since (more than 50% of 2019 target) - FTE re-training program, moving staff from back office to front office roles and new junior hirings Evolution of FTEs, #, ' M M Sales channels Rationalisation 2017 completed: branch closures in 2017 (o/w 121 in 4Q17 3 ) - Ca. 620 branch closures since 2015 (70% of 2019 target) Retail Branch network, # 3, ,140 9M2016 2,784 9M2017 2, Day-to-day Banking Migration program 2017 on track: - Revised branch formats to increase automated transactions 4 on basic services - Reduction of in-branch transactions on track (-15% 9M/9M) Automated transactions 4, % of total 88.0% 89.7% M % 9M % Exits are fully provisioned 2. Including approximately 1,000 exits in 4Q17 3. Already completed by the end of November Includes cash withdrawals, cash deposits and transfers

7 Multichannel strategy Innovative redesign of branches Branch formats FULL SERVICE Branch SMART Branch CASH-LESS Branch Description Branches with 360 service: All products and specialised advisory services Transactions provided both by teller and advanced ATMs (Casse Veloci) Partially automated branches: All products and simplified advisory services Transactions provided by advanced ATMs (Casse Veloci), no teller available Fully automated branches: Basic products and remote advisory services Transactions provided by ATMs, no teller available 2019 target # branches 1, Business Centre New centres fully dedicated to Small Business customers All products and services available Dedicated coverage for specific sector/ customer segments 7

8 Multichannel strategy Foster digital adoption Solid increase of internet & mobile users New Internet Banking, GIMB New Wallet solution for mobile payments 3M 1.6M online banking user mobile banking user +6% 2 +18% 2 New digital processes Digital signature SMS/token signature 38% digitalised contracts (7,5 million contracts 3 ) since launch in 2015 Move to digital transactions Supported by branch automation Growing number of digitally enabled transactions 900 2x # of currently installed "Casse Veloci" 4 faster migration speed for branches with "Cassa Veloce" Continuous improvement of seamless multichannel customer approach 8 1. Data as of September 30 th Increase 9M2016 9M Equal to 130 million of pages 4. Data as of November 15 th 2017

9 Multichannel strategy Reinforcing leadership in remote sales Number of remote sales +40% Remote sales increase 9M/9M Index, 2015 = 100 Strong growth of remote sales +34% Pre-approved lending solutions 9M/9M % Property & Casualty bancassurance products 9M/9M Weight on total sales M2016 9M2017 9% 17% 19% More products available on digital platform NEW NEW NEW Pre-approved lending solutions on "credit revolution 1 " platform (5 product categories) for Retail customers Robo for Advisory process (leveraging on internal best practices) SME loans offering, leveraging on credit revolution 1 approach (pre-approved credit) 9 1. Credit Revolution is a Program within Risk division mainly aiming at: a) simplifying credit process and products and b) rationalizing IT architecture and platforms.

10 Video on Multichannel strategy 10

11 End-to-End Delivery Unit to optimise internal processes and enhance customer satisfaction E2E Delivery unit Guiding principles Expected benefits/goals Teams organised in "rooms", each focusing on a different product/ process Cross-functional teams including Business, IT and other relevant Departments 1 Idea generation workshops to merge business priorities and customer feedback Agile methodology No-frills approach Fast delivery Open mindset >450 FTEs 3x 100% Increased efficiency More than 450 FTE efficiencies in 2017 Speed to open a current account 3 times faster (thus improving satisfaction of customers) Self Service for Credit Card Full remote card management on Internet and Mobile Banking 24/7 Sustainability of solutions with specific focus on risk Increased number of automated risk controls for current account opening from 0 to 7 1. E.g. Risk, Legal, Compliance, Processes, HR 11

12 SMEs as the backbone of the Italian ecosystem Italian non-financial enterprises Key client drivers 5.7 million enterprises 1 0.1% 2% 0.5% 100% Internationalisation and access to foreign markets 97% 46% Size 3 Large Medium Small Digital innovation and technology investments Generational handover, "managerialisation", industry knowledge and networking 22% Micro Access to Capital Markets: Equity/ Debt for growth acceleration 19% Companies 12% GDP 2 Strong cross-selling potential within improving Italian economic scenario Includes individual enterprises and VAT numbers 2. Based on value added distribution 3. Based on the European Commission categorization, accounting for a combination of employee number, turnover and total assets respectively: <10 and 2m or 2m for Micro, <50 and 10m or 10m for Small, <250 and 50m or 43m for Medium, 250 or >50m and >43m for Large Source: Ce.Bi. 2017, 2015 data, UniCredit analysis

13 Video: Rainbow an Italian growth story 13

14 New segments in place to enhance commercial targeting New segments in place Dedicated service models Industry verticals Large ~ 1k Groups > 350m turnover 1 CIB platform fully plugged-in with competitive service model Cost/ Income Real Estate Top ~ 8k Groups > 25m turnover 2 Commercial targeting based on key client needs Modular approach by industry, size and specific demands ~ 400 groups Mid ~ 16k Groups > 5m turnover 3 Simplified solutions to match basic client needs Digital platforms and best practice sharing with Small Business Public Sector ~ 3k groups Small Business 4 ~ 660k Clients < 5m turnover Dedicated Business Centers Remote advisory for basic banking needs Or local subsidiary of international clients 2. Or clients with complex needs based on actual and potential revenues, number of products, cross-border propensity and risk/return profile 3. Or clients with basic needs; 4. Small Business consolidated in Retail segment

15 enabled by a new digital infrastructure The data ecosystem Digital workbench with advanced data analytics Commercial targeting for lead generation Integrated access to product platforms Mobile sales productivity and enhanced advisory Cross-border capabilities Online banking platforms by segment Online portal for Large corporates with specialised tools for complex products Simple online "environment" for SMEs with value-added/ non-banking services Digitalised operations Industrialised operations through automation, digital tools and analytics Multichannel experience Digital document exchange Multiple signature collection with mobile digital signature Real time access to massive amount of internally available data, across all segments Innovate through CIB & Retail Banking digital platforms evolution Integrate advanced analytics into every function and process, across all segments 15

16 Disciplined risk approach to underwriting and monitoring Actions Evolution Network focused on investment grade classes Increased number of preapproved customers eligible for lending Improved screening of watch list portfolio and evolution of risk alerting systems for Network Default rate 1, % M2016 9M Due to seasonal effects, we expect Gross NPEs to slightly increase in CBK Italy in 4Q 2017 We confirm 2019 NPE targets Gross NPE ratio, % M2016 9M CBK Italy, including Leasing and Factoring 2. Recalculated on the bases of forecasted volumes

17 Transformation of operating model fully on track Strong commercial dynamics thanks to network revamp Focus on multichannel client approach, leveraging on all interaction points Improved customer focus with a lower cost structure Strict risk discipline on new loan origination and tight risk monitoring Transform 2019 fully on track, yielding tangible results 17

18 Annex 18

19 Targets CBK Italy m Revenues Costs M2016 9M ,676 5,797 5,541 7,521-4,602-3,459-3,351-3,956 CAGR % -3.7% Cost/income Cost of Risk RWA RoAC 60.0% 59.7% 60.5% 52.6% 94 bps 74 bps 66 bps 58 bps 77,008 78,826 81, , % 10.4% 11.7% 12.9% % - 19 Note: figures were recasted on a like-to-like basis to consider changes in scope of business segment and line adjustment; Allocated Capital based on RWA equivalent figures calculated as 12.5% of divisional RWA

20 Disclaimer This Presentation may contain written and oral forward-looking statements, which includes all statements that do not relate solely to historical or current facts and which are therefore inherently uncertain. All forward-looking statements rely on a number of assumptions, expectations, projections and provisional data concerning future events and are subject to a number of uncertainties and other factors, many of which are outside the control of UniCredit S.p.A. (the Company ). There are a variety of factors that may cause actual results and performance to be materially different from the explicit or implicit contents of any forward-looking statements and thus, such forward-looking statements are not a reliable indicator of future performance. The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable law. The information and opinions contained in this Presentation are provided as at the date hereof and are subject to change without notice. Neither this Presentation nor any part of it nor the fact of its distribution may form the basis of, or be relied on or in connection with, any contract or investment decision. The information, statements and opinions contained in this Presentation are for information purposes only and do not constitute a public offer under any applicable legislation or an offer to sell or solicitation of an offer to purchase or subscribe for securities or financial instruments or any advice or recommendation with respect to such securities or other financial instruments. None of the securities referred to herein have been, or will be, registered under the U.S. Securities Act of 1933, as amended, or the securities laws of any state or other jurisdiction of the United States or in Australia, Canada or Japan or any other jurisdiction where such an offer or solicitation would be unlawful (the Other Countries ), and there will be no public offer of any such securities in the United States. This Presentation does not constitute or form a part of any offer or solicitation to purchase or subscribe for securities in the United States or the Other Countries. Pursuant the consolidated law on financial intermediation of 24 February 1998 (article 154-bis, paragraph 2) Francesco Giordano, in his capacity as manager responsible for the preparation of the Company s financial reports declares that the accounting information contained in this Presentation reflects the UniCredit Group s documented results, financial accounts and accounting records. Neither the Company nor any member of the UniCredit Group nor any of its or their respective representatives, directors or employees accept any liability whatsoever in connection with this Presentation or any of its contents or in relation to any loss arising from its use or from any reliance placed upon it. 20